TfiilSitfj And
Cruisings Salty Seadog Learns New Tricks
(Continued from page 21)
climbed, Kvaerner's sale intentions seemed to
have been shelved and Antti Pankakoski sat
down with MR/EN to speculate on events in
his company's recent past and to divulge his
views on the apparent turnaround. First order
of business: details on the Cunard reorganiza-
tion strategy.
"Definitely our intention is to give good value
for the dollar. The product is a luxury product,
but it should always give good value for the dol-
lar spent," said Pankakoski, explaining that
an important element of the company's strategy
was decided a few years ago when Cunard
determined it would "concentrate on the luxury
end."
At this time the company also sold off certain
ships, launched aggressive sales and marketing
campaigns and improved service onboard, rein-
forcing the corporate mission of growth through
refurbishment and strategic marketing agree-
ments.
"The process that he (Ward) and the team
started — I do share their views and strategies.
He and the team here (New York) started a lot
of good initiatives. Basically, we're following
the same lines, with a few differences," said
Pankakoski.
The main tenets of the plan call for mainte-
nance of a five-ship fleet, superior management
shoreside, the best passenger service seaside
and a peaked emphasis on all that exudes lux-
ury. The seasoned observer would also add
Cunard's engagement of a new public relations
firm, the company's increased internet presence
and the cruise line's absolute commitment to
the highest vessel maintenance standards to
the mix.
"The ships are up to
the highest modern
standards. They have
been well maintained.
We have a refit every
two years so as to make
sure we keep up with
the state-of-the-art,"
said the Cunard execu-
tive.
Pankakoski also
spoke about Cunard's
information technology
(IT) efforts, specifically
in the areas of revenue
management and
shoreside reservations,
stressing: "We're really
trying to bring this
company up to date.
We're working on a
number of initiatives at
the same time. In order to
maintain and improve our position, it goes
without saying that you have to."
"I think we've seen some results based on
higher '97 profits," said Pankakoski, adding:
"The company is moving and the company is
moving now in the right direction.
Management-wise, we've been able to stabilize
the company." He also said that keeping
Cunard's senior management concentrated in
New York as opposed to a split with London
seems to have effected a better exchange of
information, which is "much, much better from
a team point of view."
To Sell Or Not To Sell
In mid-May 1997, Kvaerner shares surged
seven percent based on
the company's higher
than predicted earnings
for Ql. Reported profits
of $62 million included
funds earned from the
divestment of shares in
Norwegian shipping
group Bergensen and
Britain's Amec pic, inter-
ests which were deemed
sellable as non-core
assets. Market watchers
wondered if these trans-
actions spoke volumes
concerning Cunard's fate.
Pankakoski was willing
to clear the air somewhat
in this regard.
This operation is still being
regarded as a so-called non-core asset. At the
same time, we have the full support of
Kvaerner at all times ... They have approved
every measure we have proposed,"
Pankakoski confided to MR/EN, squelching,
if temporarily, gossip about parent company
ownership misgivings.
Indeed, Kvaerner has been generous in
approving Cunard's proposed measures, which
according to the Cunard chief, account for a $40
million tab which will go towards funding work
on the line's five ships for just one year
(December 1996 to December 1997).
Pankakoski also has his own measures in
mind for increasing market shares and ensur-
ing Cunard's dominance at the high-end niche
of the cruise sector for years to come. He told
MR/EN that his goal for 1997 is to reach full
capacity utilization, and this goal doesn't seem
far off as the year's bookings are solid. "In '97,
the ships will be relatively full throughout the
year," said the CEO.
After the goal of sailing full ships is realized,
Pankakoski said that he will not overlook the
possibilities of building new ships, exploring
mergers or acquiring existing fleets. On the
subject of newbuilding, this shipbuilder by pro-
fession confided: "I think that would be the
likely way to go. I would hate to exclude the
notion of doing something with another line or
acquiring existing ships. Building a new ship is
always a very attractive option."
Poised For Success In Global Market
The failure of several smaller cruise lines in
26 Maritime Reporter/Engineering News